Unlock the Secret to $1 Million Retirement
Discovering the path to a $1 million retirement can be achieved through exchange-traded funds (ETFs) – funds that operate similarly to stocks. Below are nine noteworthy index ETFs to consider, each of which mirrors a specific index.
ETF Expense Ratio Five-Year Avg. Annual Return 10-Year Avg. Annual Return 15-Year Avg. Annual Return
Vanguard S&P 500 ETF (VOO) 0.03% 14.60% 13.45% N/A
Vanguard Total Stock Market ETF (VTI) 0.03% 13.96% 12.89% 14.13%
Vanguard Total World Stock ETF (VT) 0.07% 10.51% 9.59% 10.00%
Vanguard Total Bond Market ETF (BND) 0.03% (-0.47%) 1.22% 2.27%
Schwab US Dividend Equity ETF (SCHD) 0.06% 11.47% 11.26% N/A
Schwab US Large-Cap Growth ETF (SCHG) 0.04% 18.92% 16.83% 17.06%
VanEck Semiconductor ETF (SMH) 0.35% 28.26% 25.89% 23.29%
Technology Select Sector SPDR ETF (XLK) 0.09% 19.51% 20.41% 19.03%
Vanguard Information Technology ETF (VGT) 0.09% 19.41% 20.80% 19.37%
Source: Morningstar.com, as of Feb. 4, 2025.
Each of these funds follows a distinct index. For example, the Vanguard S&P 500 ETF tracks the S&P 500 index containing 500 of America’s largest companies. The Schwab US Dividend Equity ETF monitors the Dow Jones U.S. Dividend 100™ Index.
The provided table displays exceptional performance records for these funds. With average annual gains of 19% over 15 years, your investment could grow more than 13-fold. While these returns aren’t guaranteed, diversifying across a selection of index funds, adding to them over time, and holding them for the long term can yield optimal results.
Notably, each ETF boasts a relatively low expense ratio, minimizing costs that can impact your overall investment outcomes. For instance, a 0.03% fee on a $1,000 investment would cost just $0.30 annually.
Here’s a brief overview of the highlighted ETFs:
– Vanguard S&P 500 ETF: Offers broad diversification, a modest dividend yield, and lower volatility compared to other ETFs.
– Vanguard Total Stock Market ETF: Provides exposure to the entire U.S. stock market, including small
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It’s a fact that when the stock market experiences a downturn, which it inevitably does from time to time, investments like the ones mentioned are likely to be affected. However, seasoned investors are aware that despite periodic setbacks, the stock market has historically bounced back from declines and gone on to achieve new record highs.
VanEck Semiconductor ETF: If you have a bullish outlook on specific sectors of the economy, you may consider exploring ETFs that concentrate on those areas. An impressive example is this ETF that centers on semiconductors. Additionally, there are ETFs available that focus on healthcare, real estate, energy, and various other industries.
Technology Select Sector SPDR ETF: This particular fund is comprised of approximately 70 technology companies, with significant holdings in Apple, Microsoft, and Nvidia, which collectively make up nearly 40% of its total value.
Vanguard Information Technology ETF: Another option in the realm of technology stock ETFs is this fund, which includes about 315 tech-related companies. Its top three holdings mirror those of the previously mentioned ETF, representing around 45% of the fund’s overall value.
Consider adding these funds to your long-term investment portfolio as they may assist you in achieving financial milestones such as reaching a retirement savings goal of $1 million or even $2 million.
Don’t overlook this chance to potentially capitalize on a lucrative investment opportunity. Have you ever regretted missing out on investing in highly successful stocks? If so, you may be interested in this.
Occasionally, our team of experts identifies promising companies and issues a “Double Down” stock recommendation for those poised for growth. If you fear that you may have missed the boat on investing in these companies, now could be the ideal moment to get in before it’s too late. The results speak for themselves:
– Nvidia: Had you invested $1,000 when we recommended doubling down in 2009, you would now have $340,048!
– Apple: A $1,000 investment following our double down recommendation in 2008 would be worth $44,908 today!
– Netflix: Investing $1,000 based on our double down advice in 2004 would have grown to $554,019!
Currently, we are issuing “Double Down” alerts for three exceptional companies, and opportunities like this may not come around again anytime soon.
Find out more about these compelling prospects!
*Stock Advisor returns as of February 3, 2025
Selena Maranjian holds positions in Apple, Microsoft, Nvidia, and Schwab U.S. Dividend Equity ETF. The Motley Fool has positions in and endorses Apple, Microsoft, Nvidia, Vanguard S&P 500 ETF, Vanguard Total Bond Market ETF, and Vanguard Total Stock Market ETF. The Motley Fool advocates for long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool upholds a disclosure policy
